BUSINESS
03/14/2014 02:35 pm ET | Updated Mar 14, 2014

FDIC Sues 16 Big Banks For Rigging LIBOR Rates

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NEW YORK (Reuters) - The Federal Deposit Insurance Corporation sued 16 of the world's largest banks on Friday, accusing them of collusively suppressing interest rates.

The lawsuit, filed in the federal district court in New York, was the latest to accuse financial institutions of conspiring to manipulate Libor, or the London Interbank Offered Rate.

The FDIC said the defendants' conduct caused substantial losses to 38 banks that the U.S. regulator had taken into receivership since 2008, including Washington Mutual Bank and IndyMac Bank.

Among the banks named as defendants include Bank of America Corp, Barclays PLC, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings PLC, JPMorgan Chase & Co, the Royal Bank of Scotland Group PLC and UBS AG.

The lawsuit also named as a defendant the British Banks' Association, the U.K. trade organization which during the period at issue administered Libor.

(Reporting by Nate Raymond in New York; Editing by Chizu Nomiyama)

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